Pension Contribution

Pension contribution

Pension contribution shall be required if an employee of Federal Government is posted on deputation outside the Federal Government to an autonomous body or corporation or project or program under a Provincial Government and vice versa. In such cases, the contribution shall be paid by borrowing organization at the time of repatriation or relinquishment of charge by an employee through treasury challan duly verified by treasury office and the amount contributed shall also be mentioned on last pay certificate supported by schedule of supported by schedule of monthly contribution.

Pension contribution shall be required and paid if an employee of Federal Government or Provincial Government is posted to such organizations that are not funded by Government of Pakistan or a Provincial Government, raise their own revenues and incur expenditure out of those revenues e.g., an employee of Federal Government or Provincial Government is posted on deputation to Capital Development Authority (CDA) and vice versa. The Office of Controller General of Accounts (CGA) may issue a list and decide on status of an entity regarding requirements of pension contributions.”

Military Service

Service rendered by an employee belonging to one of the classes mentioned, which is pensionable under military rules but which terminates before a pension has been earned in respect of it, may, at the discretion of the Government of Pakistan or of the Provincial and Minor Local Governments specified, be allowed to count, when followed by service qualifying for pension under civil rules, as part of such service, provided that any bonus or gratuity received in lieu of pension on, or since discharge from military service shall be refunded in such number of monthly instalments, not normally exceeding 36 and beginning from such date, as in each case the Government of Pakistan, Provincial Government or Minor Local Government, as the case may be, may decide. Service so allowed to count shall, however, be restricted to service, within or outside the employee’s unit or department, in Pakistan or elsewhere, which has been paid for from Pakistan revenues or for which a pensionary contribution has been received by Pakistan revenues.

British and Pakistan military

British and Pakistan military service shall be allowed to count alike for pension and no contribution towards, or share of, a pension earned as a result of this concession shall be claimed from the British Government.

In case of a government servant on deputation to foreign service within Pakistan or abroad, regular payment of pension contribution shall be ensured for the period the government servant remains on deputation.

Recovery of Pension Contributions

(i) Full particulars of the officers and staff proceeding on foreign service must be communicated promptly to the Audit Offices.

(ii) The Departments should ensure that recoveries of pension and leave salary contributions in respect of all officials who are on foreign service have been effected and accounted for by the Audit Officer.

(iii) Unless the official was himself liable to pay the pension contributions, the issue of his Pension Payment Order should not be held-up for want of receipt of such contributions.

POLICY GUIDELINES FOR THE PAYMENT OF PENSION CONTRIBUTION.

The undersigned is directed to state that policy guidelines/instructions relating to payment of pension contribution for services rendered to government by employees of autonomous/semi-autonomous organization or by the govt. servants in autonomous/semiautonomous organization have been issued from time to time as per communications. It has been observed that Ministries / Divisions are making references to this Division for approval of payment of pension contribution and endorsement of sanction letters on this account.